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Hetzner Prices increase 30-40%

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Re: Hetzner Prices increase 30-40%

#21
post #7
post #4

with no explanation of why?

https://www.hetzner.com/pressroom/statement-price-adjustment... Text in full: > There have been drastic price increases in various areas in the IT branch recently. That is why, unfortunately, we must also increase the prices of our products. > The costs to operate our infrastructure and to buy new hardware have both increased dramatically. Therefore, our price changes will affect both existing products and new orders…

A hosting company referring to the core of their business as "the IT branch" doesn't instil confidence.

Re: Hetzner Prices increase 30-40%

#22
post #18

Why are they increasing the prices on already existing infrastructure? Is that a way to "subsidize" the new purchases?

Power and cooling costs also play a role, probably.

Even if you have an unbelievable PUE of 1.00, you are still affected by the energy cost increases. There's no running from that.

Edit: I misremembered the PUE formula. This comment has been edited to correct my mistake.

Re: Hetzner Prices increase 30-40%

#23
post #20

Earlier quoted context omitted.

AI bubble won't last forever when a lot of compute is burned at a loss just so people can generate AI videos of sharks driving cars for social media shorts. It will burst at some point, at which HW manufacturing will have to lower prices if they still want to have enough sales to stay in business, since most of their current sales boom comes from HW they haven't even made yet. OpenAI can't keep losing investor money…

I really don't think so. I feel like we're at a takeoff. Senior engineers using AI coding are 10x more productive. My output has jumped dramatically. I'm a senior engineer and built six nines, active-active systems that moved billions of dollars a day. I am absolutely a beast with these models. I can replace an entire team just by myself. I'm literally shipping an entire week of features in half a day. I'm reviewing…

Yea but are you paying a profitable amount of money to your service provider for you to do it? I find it hard to believe that Anthropic is profiting off of my $100/mo subscription based on how active I keep my machines running.

Re: Hetzner Prices increase 30-40%

#24
post #20

Earlier quoted context omitted.

AI bubble won't last forever when a lot of compute is burned at a loss just so people can generate AI videos of sharks driving cars for social media shorts. It will burst at some point, at which HW manufacturing will have to lower prices if they still want to have enough sales to stay in business, since most of their current sales boom comes from HW they haven't even made yet. OpenAI can't keep losing investor money…

I really don't think so. I feel like we're at a takeoff. Senior engineers using AI coding are 10x more productive. My output has jumped dramatically. I'm a senior engineer and built six nines, active-active systems that moved billions of dollars a day. I am absolutely a beast with these models. I can replace an entire team just by myself. I'm literally shipping an entire week of features in half a day. I'm reviewing…

>Senior engineers using AI coding are 10x more productive.

Are the subscriptions of those engineers enough to make their use-case profitable and on top to also be subsidizing the cost of AI video slop generation and keep the company profitable?

>Video editors using video models can replace entire studio production departments.

Then why is OpenAI losing more an more money?

>This is the next industrial revolution.

I'm not saying it isn't, but we did have the .com bubble burst even though that was also revolution. Something can be a bubble and a revolution simultaneously. The internet didn't go away after the .com bubble burst, just the crazy speculations did, which is what I was saying will happen with the AI bauble. The bubble will burst and only the profit generating parts of AI will remain.

Re: Hetzner Prices increase 30-40%

#28
post #7
post #4

with no explanation of why?

https://www.hetzner.com/pressroom/statement-price-adjustment... Text in full: > There have been drastic price increases in various areas in the IT branch recently. That is why, unfortunately, we must also increase the prices of our products. > The costs to operate our infrastructure and to buy new hardware have both increased dramatically. Therefore, our price changes will affect both existing products and new orders…

this should be the link instead. @dang

Re: Hetzner Prices increase 30-40%

#29
post #7

Earlier quoted context omitted.

https://www.hetzner.com/pressroom/statement-price-adjustment... Text in full: > There have been drastic price increases in various areas in the IT branch recently. That is why, unfortunately, we must also increase the prices of our products. > The costs to operate our infrastructure and to buy new hardware have both increased dramatically. Therefore, our price changes will affect both existing products and new orders…

A hosting company referring to the core of their business as "the IT branch" doesn't instil confidence.

I understand it as "the branch we're purchasing/hiring from", not the inner part of the company.
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